Europeans Push for Wealth Tax to Fund Green Transition

Hey there! So, it looks like there’s a growing call in Europe for a wealth tax to finance the green transition. People are starting to realize that we need to take action, and one way to do that is by taxing the wealthy. In France, there’s been talk about introducing a wealth tax to fund the ecological transition. And in the summer, some MEPs from the Social Democrat party submitted a request to the European Commission for a European citizens’ initiative on the subject. If they can gather a million signatures from at least seven countries within a year, it could lead to a European directive introducing an ecological and social wealth tax targeting the richest 1% of households. That’s a big deal!

A study commissioned by the Green Group in the European Parliament found that a European tax on the richest 0.5% of households could bring in a whopping 213 billion euros every year. That’s a lot of money that could be used to make some serious changes.

Now, here’s the interesting part. Wealth taxes have pretty much disappeared in the EU member states. Only Spain still has one, and even that has different rates depending on the region. But when it comes to climate issues, the debate at the European level is a whole different story.

In France, President Emmanuel Macron got rid of the wealth tax and replaced it with a tax on property wealth. But the new tax didn’t bring in as much money as the old one. In Germany, the wealth tax is still part of the country’s Basic Law, but it hasn’t been levied since 1995. So, it’s clear that we need to find a new solution.

But here’s the thing. It’s unlikely that we’ll see a wealth tax at the national level in France and Germany. The politicians there seem to be more interested in using the idea of a wealth tax to gain support from voters and unions, rather than actually implementing it. It’s a bit disappointing, to be honest.

That’s why some people are looking to the European level for a solution. By pushing for a wealth tax at the EU level, they can avoid the criticism that individual countries’ businesses will be negatively affected. And it seems like a lot of people are on board with this idea. Public opinion in many countries, including Germany, is in favour of a wealth tax.

So, while a wealth tax still has a long way to go before it becomes a reality in Europe, there’s definitely some movement happening. And if the European Citizens’ Initiative can gather enough signatures, it could really make a difference. Not only would it help fund the green transition, but it could also strengthen the EU as a whole. And that’s something we could all use right now, especially with those far-right Eurosceptic parties trying to weaken it. Let’s hope for the best!